Fees and Compensation
General Fee Information
Fees paid to BTWM are exclusive of all custodial and transaction costs paid to the client’s custodian,
brokers or other third-party consultants. Fees paid to BTWM are also separate and distinct from
the fees and expenses charged by mutual funds, ETFs (exchange traded funds) or other investment
pools to their shareholders (generally including a management fee and fund expenses, as described
in each fund’s prospectus or offering materials). Fees charged by third-party money managers will
be charged separately and in addition to BTWM’s fees. These fees will be detailed in the individual
manager’s Firm Brochure. The client should review all fees charged by funds, brokers, BTWM and
others, to fully understand the total amount of fees paid by the client for investment and financial-
related services.
The current standard annual fee schedules, based on a percentage of assets under management, is
listed below. Fees are negotiable and specific fees charged will be listed in the client’s written
advisory agreement.
Investment Advisory services (stand-alone service without a financial planning) are charged
according to the fee schedule below:
First $2,000,000 1.00%
Next $3,000,000 0.75%
Balance Above $5,000,000 0.50%
Assets In “Cash Management” only Accounts
First $2,000,000 0.50%
Next $3,000,000 0.50%
Balance above $5,000,000 0.50%
Wealth Management program (Investment Advisory with financial planning) are charged according
to the fee schedule below:
First $5,000,000 1.00%
Balance above $5,000,000 0.50%
BTWM receives fees for investment management services to the Funds based on the amount of
assets under management as disclosed in the Funds offering documents and investment
management agreement. For BTWM clients, the investment management fee for investing in the
fund is only included in the total AUM calculation. Investors in the fund that are not direct BTWM
clients are charged the 1.0% fee directly from the fund. Fees are negotiable at the sole discretion of
BTWM. The fees are payable quarterly in advance directly from Limited Partners accounts, based
on the amount in that partner’s capital account at the beginning of the quarter.
The minimum portfolio value is generally set at $1,000,000. The minimum investment in the BT
Opportunity Fund II is $250,000. BTWM, in its sole discretion, reserves the right to waive its
minimum fee and/or charge a lesser investment advisory fee based upon certain criteria (e.g.,
historical relationship, type of assets, anticipated future earning capacity, anticipated future
additional assets, dollar amounts of assets to be managed, related accounts, account composition,
negotiations with clients, etc.).
Portfolio management fees are generally payable quarterly, in advance or arrears, as described in
the client’s advisory agreement. Fees are based on the market value of Client's account on the last
day of the prior quarter as adjusted and prorated for asset additions/withdrawals. For clients
billed in advance, if management begins after the start of a quarter, fees will be prorated
accordingly. For clients billed in arrears, deposits or withdrawals of $25,000 or more made during
the calendar quarter in which the client was billed, will be prorated and charged in arrears, as
applicable. Fees are debited directly from client accounts and are calculated using the total assets
in the account as shown on the client custodial statement, including any assets purchased on
margin. Net positive cash balances in type 1 (cash account) and type 2 (margin account) are
included in the fee calculation.
Trade away/Prime Broker Fees. Relative to its discretionary Investment Advisory services, when
beneficial to the client, individual fixed income transactions can be effected through broker-dealers
other than the account custodian, in which event, the client generally will incur both the fee
(commission, mark-up/mark-down) charged by the executing broker-dealer and a separate “trade
away” and/or prime broker fee charged by the account custodian.
General Consulting Fees
Consulting fees are generally charged at either an hourly rate of $200-$450 or a fixed rate of
$1,000-$10,000. Fees are negotiable and depend on the complexity of the project and the estimated
amount of time required to complete the project. Fees for consulting are due and payable upon
completion and presentation of the project.
401(k) Services
Annual fees are billed quarterly in arrears, and are billed directly by the third-party service
provider. The initial fee will be pro-rated to the date that the account was established. A portion of
these fees are paid to BTWM for advisory services and a portion is retained by the third-party
service provider for their retirement plan services. Clients will incur certain other charges imposed
by other parties that are integral to the operation of these plans. The record keeper, custodian,
third-party administrator, mutual funds, and other parties impose fees for their services, which will
be outlined in their respective contracts or prospectus.
Client Terminations
Either BTWM or the client can terminate their Investment Management Agreement at any time,
subject to any written notice requirements in the agreement. In the event of termination, any paid
but unearned fees will be prorated according to the days the account was opened during the
calendar quarter and excess fees will be promptly refunded to the client, and any fees due to BTWM
from the client will be invoiced or deducted from the client’s account prior to termination. Upon
written receipt of notice to terminate and liquidate the client’s account, BTWM will, in an orderly
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